In a significant stride toward bolstering local content development in Nigeria’s oil and gas industry, First City Monument Bank (FCMB) has been named one of the Participating Financial Institutions (PFIs) for the Community Contractors Finance Scheme. This initiative, spearheaded by the Nigerian Content Development and Monitoring Board (NCDMB) in collaboration with the Bank of Industry Limited (BoI), aims to address critical funding and skills gaps that have long hindered the growth and capacity of local contractors in the sector. The scheme is a pivotal component of the Nigerian Content Intervention Fund, designed to empower indigenous contractors, strengthen the oil and gas industry, and enhance its contribution to Nigeria’s national economy.
The Community Contractors Finance Scheme offers loans of up to N100 million at a competitive interest rate of 8% per annum. These funds are tailored to enable local contractors to execute impactful projects within their host communities, fostering economic growth and sustainable development. The initiative, remodelled in 2025 under the leadership of Engr. Felix Omatsola Ogbe, Executive Secretary of the NCDMB, reflects a strategic focus on deepening the impact of local content implementation at the grassroots level. By providing accessible financing, the scheme seeks to empower community-based contractors, create jobs, enhance skills acquisition, improve security, and drive sustainable national development.
As a Participating Financial Institution, FCMB plays a critical role in the scheme’s implementation. The bank is tasked with identifying, prequalifying, and verifying the contract performance of eligible indigenous contractors. Leveraging its extensive industry expertise, efficient credit processes, and strong partnerships with International Oil Companies (IOCs) and National Oil Companies (NOCs), FCMB ensures the seamless disbursement of loans to qualified beneficiaries. The scheme incorporates innovative financing options, such as invoice discounting and local purchase orders, with flexible loan tenors ranging from 90 to 365 days. This flexibility accommodates the diverse needs of contractors, enabling them to execute projects efficiently and effectively.
Yemisi Edun, Managing Director and Chief Executive Officer of FCMB, emphasized the transformative potential of the initiative. “We appreciate the confidence placed in us by the Nigerian Content Development and Monitoring Board, the Bank of Industry, and all stakeholders,” she stated. “The Community Contractors Finance Scheme aligns with our mission to promote inclusive and sustainable growth by fostering a collaborative ecosystem that connects people, capital, and markets. Through this partnership, we expect to see significant benefits for communities, enhanced local content development, empowerment of community-based contractors, job creation, skills acquisition, improved security, and overall sustainable national development.”
One of the standout features of the scheme is its accessibility. Unlike traditional loan programs that often require collateral, the Community Contractors Finance Scheme adopts a more inclusive approach. Repayments are structured through the domiciliation of contract proceeds, milestone-based disbursements, and diligent monitoring to ensure funds are utilized effectively. This framework not only supports critical oil and gas projects but also prioritizes the unique needs of contractors, making financing more attainable for local businesses.
About First City Monument Bank (FCMB)
FCMB, a member of FCMB Group Plc, is a leading financial institution committed to fostering inclusive and sustainable growth. Rooted primarily in Nigeria, the bank builds supportive ecosystems that connect people, capital, and markets, driving economic progress across communities.
About the Nigerian Content Development and Monitoring Board (NCDMB)
Established under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, the NCDMB is mandated to develop human and material capacities, deepen Nigerian participation, and ensure compliance within the oil and gas industry. As of December 2024, the NCDMB has achieved a remarkable milestone, increasing Nigerian content in the industry to 56%, a testament to its commitment to local content development.
The Community Contractors Finance Scheme represents a bold step toward empowering local contractors and strengthening Nigeria’s oil and gas sector. Through strategic partnerships like the one with FCMB, the NCDMB and BoI are laying the foundation for a more inclusive and sustainable economic future, with far-reaching benefits for communities and the nation as a whole.
